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Key findings of the 2011 Edelman Trust Barometer for Ireland
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2011 Edelman Trust BarometerJanuary 27th 2011
Ireland findings
1
Trust in Key Institutions
- Government
- Business
- Media and sources of information
- NGOs
Look at the benefits of Trust
Panel Discussion and Q&A
2
Overview
Edelman Trust Barometer at a glance
Eleventh annual study
5,075 people in 23 countries of which 200 in Ireland
Ages 25 to 64
College-educated
In top 25% of household income per age group in each country
Report significant media consumption and engagement in business news and public policy
EU Select Countries: UK, France, Germany, Italy, Spain, Netherlands, Sweden, Ireland, Poland (Each country N=200 aged 25-64)
3
The Edelman Trust Barometer in retrospect
Rising Influence of NGOs2001
Fall of the celebrity CEO2002
Earned media more credible than advertising2003
U.S. companies in Europe suffer trust discount2004
Trust shifts from “authorities” to peers2005
“A person like me” emerges as credible spokesperson2006
Business more trusted than government and media2007
Young influencers have more trust in business2008
Business must partner with government to regain trust2009
Trust is now an essential line of business2010
4
NGOs Business Government Media0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
57%54%
47% 45%
61%56%
52%49%
2010 2011
Trust in Institutions – Global
Globally, trust increases in all institutions
+4
+5 +4
+2
6
NGOs Business Government Media 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
62%58%
54%51%
59%
53%
46% 44%
53%
46%
20%
38%
Global E.U. Ireland
Trust in institutions
Ireland has significantly lower trust in government than in other institutions
7
2009 2011
Global 49
Netherlands 69
China 61
Brazil 58
India 58
Poland 47
Sweden 46
Russia 44
Italy 43
UK 42
Germany 42
France 41
Spain 40
Ireland 39
US 36
UAE N/A
Global 55
Brazil 80
UAE 78
Netherlands 73
China 73
Italy 56
India 56
Sweden 52
Spain 51
France 50
Poland 49
Germany 44
US 42
UK 40
Russia 40
Ireland 39
Trust Index: 2009 – 2011Ireland moves to last place in 2011
8
Nether-lands
Sweden France Italy Spain UK Poland US Russia Germany Ireland0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
75%
60%
43%36% 36% 38%
31%
46%
38%43%
28%
75%
64%
49%45% 43% 43% 42% 40% 39%
33%
20%
Trust in Government (2010 – 2011)
Trusters Distrusters (< 50%)
- 6+11
Ireland least trusting of government among all EU countries
- 10
2010 2011
10
US EU UK Ireland Russia Sweden Italy NetherlandsPoland France Germany Spain0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
61% 61%
82% 82%
69%66%
63%
57%53%
50% 49% 48%
Believe that government needs to regulate corporations’ activities to ensure that they are behaving in a responsible manner
And eight out of 10 believe government must step in to ensure business behaves responsibly
11
Nether-lands
Italy Spain Germany Sweden France Ireland US Poland UK Russia0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
75%
59%54%
40%
55%
36%31%
54%
46%49%
42%
74%
64%
53% 52% 52%48% 46% 46% 44% 44%
41%
Trust in Business (2010 – 2011)
Trusters Distrusters (< 50%)Neutral2010 2011
+15
- 8
Ireland trust in business increased 15 points; now on par with levels in other EU countries
+12 +12
13
China India Japan Brazil France Russia US Germany UK Ireland*0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
78%83%
61%
48%
40%
54%
71%
44% 46%
26%
90%87%
71% 69%
52%
44%
25% 23%
16%
6%
2008 2011
Since financial crisis, trust in banks takes big hit in the West Reverse is true in China, India, Japan, Brazil
Trust in Banks
+12
- 46
- 30
- 20
+21+10
- 10
+12 - 21
14
78% 75%
64% 61%
61% 54%
63% 64%
63% 58%
63% 59%
62% 61%
57% 51%
56% 54%
54% 53%
52% 55%
57% 50%
48% 39%
41% 24%
33% 6%
36% 16%Financial services
Banks
Insurance
Media
Brewing and spirits
OTC personal health care products
Consumer packaged goods
Energy
Pharmaceuticals
Entertainment
Retail
Biotech
Food and beverage
Telecommunications
Automotive
Technology
50%
51%
52%
54%
57%
57%
59%
62%
63%
63%
65%
65%
66%
68%
69%
81%
Trust in Sectors
Ireland less trusting than global peers of most sectors
Significant at 95% confidence level compared to global
15
Globa
l
Mex
ico
Brazil
China
Indo
nesi
a
Argen
tina
Nethe
rland
sUAE
S. Kor
ea
Spain
Canad
aIta
ly
Polan
dUK US
Singa
pore
Russi
a
Fran
ce
Irela
ndIn
dia
Austra
lia
Japa
n
Sweden
Germ
any
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
53%
78%
58%60%
36%
81%
44%45%
59%63%
55%
63%
52%
41%
55%52%
43%47%
37%
46%42%
52%
82%
73% 72%69%
66% 63%62% 60%
54% 53% 53% 53% 51%50% 48% 47%
41%39% 39% 39% 36%
35%
19%
2009 2011
Perceptions of Ireland as a place to do business
Trust in Companies Headquartered in Ireland
+ 15
- 18
N/A N/A N/A
+ 12+ 33
+ 16- 10
- 12- 14
- 13
- 23
- 11
16
UAE
Japan
India
S. Kore
a
Singap
ore
Sweden
Mex
ico
Indones
ia US
Poland
Austra
lia
Canad
a
France
Russia
Nether
lands
Argen
tina
UK
Irela
nd
China
Brazi
l
Germ
any
Italy
Spain
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
84%
72% 70% 70%
64%60%
57% 57% 56% 55%52% 50% 49% 48%
44% 44% 43% 43%39% 37% 35% 33%
30%
% who agree
Milton Friedman: “The social responsibility of business is to increase its profits”
Majority agree
Less than half agree with Milton Friedman
17
65% 77%
63% 76%
62% 61%
61% 74%
49% 60%
48% 48%
43% 54%
40% 37%
33% 51%
28% 37%Delivers consistent financial returns to investors
Has highly-regarded and widely admired top leadership
Is an innovator of new products, services or ideas
Is a good corporate citizen
Prices its brands fairly and competitively
Communicates frequently and honestly on the state of its business
Has transparent and honest business practices
Treats employees well
Offers high quality products or services
Is a company I can trust
39%
39%
46%
51%
55%
55%
65%
63%
69%
65%
Reputation Factors
Trust, high quality products/services, transparency, employee treatment and communication most important reputation factors in Ireland
Significant at 95% confidence level compared to global
18
Nether-lands
Poland Spain Italy France Ireland Germany Sweden Russia US UK0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
58%
37%
49%
38% 36%33%
39%35% 37% 38%
31%
69%
53%
46% 45% 45%
38% 37% 37% 37%
27%22%
Trust in Media (2010 – 2011)
+16
+11
- 11
Trusters
Distrusters (< 50%)
- 9
Ireland has low trust in media, but on par with most other EU countries
2010 2011 Neutral
20
26% 23%
27% 28%
26% 21%
26% 31%
24% 22%
15% 17%
9% 8%
7% 2%
6% 4%
6% 6%
12% 9%
7% 6%
Traditional sources and online search engines most trusted sources of information about a company
Corporate/product advertising
Corporate communications such as press releases
Microblogging sites, such as Twitter
Social networking sites
Content-sharing sites, such as YouTube
Blogs
News/RSS feeds
Online search engines
Radio or radio news
Magazines or business magazines
Television or television news
Newspapers
11%
18%
7%
9%
9%
11%
18%
28%
27%
28%
31%
33%
Tra
ditio
na
lS
oc
ial M
ed
iaC
orp
ora
te
Trusted Information Sources – Trust a Great Deal
On
line
M
ultip
le
so
urc
es
Significant at 95% confidence level compared to global
21
Social media
Friends and family
Online search engine
Broadcast (radio/TV)
Print (newspapers/magazines)
Online news sources
Company website
0% 10% 20% 30% 40% 50%
3%
10%
16%
17%
18%
18%
19%
Social media
Friends and family
Company website
Online news sources
Broadcast (radio/TV)
Print (newspapers/magazines)
Online search engine
0% 10% 20% 30% 40% 50%
2%
8%
10%
13%
14%
20%
32%
Where Informed Publics go for company news and information – Ireland
First Source Second Source Are these the same types of sources you consult first for information
about a business crisis?
People go to trusted sources first for information about a company – online search engines and traditional print and broadcast media
No; 14%
Yes; 86%
22
Strong media brands rise to the top
Ireland Information Sources
1. Google 39%
2. Irish Times 35%
3. RTÉ 26%
4. Irish Independent 11%
5. The Financial Times 11%
6. The Economist 8%
7. BBC 7%
8. Irish Examiner 6%
9. Sky News 5%
10. Sunday Business Post 5%
U.S. Information Sources
1. Google 31%
2. The Wall Street Journal 24%
3. The New York Times 16%
4. CNN 16%
5. FOX News 14%
6. Yahoo! 10%
7. National Public Radio 7%
8. The Economist 7%
9. Bloomberg 7%
10. MSNBC 6%
U.K. Information Sources
1. Google 47%
2. BBC 46%
3. The Financial Times 16%
4. The Times 13%
5. The Guardian 11%
6. The Economist 7%
7. The Telegraph 7%
8. Sky News 6%
9. Yahoo! 5%
10. The Independent 4%
China Information Sources
1. CCTV 30%
2. Baidu 18%
3. Sina 11%
4. Sohu 10%
5. `163.COM 8%
6. Google 7%
7. Phoenix Television 5%
8. Xinhua 4%
9. The Wall Street Journal 1%
10. China Securities Journal 1%
Most relied on source for company information (unaided)
23
Trust in NGOsInformed Publics ages 35-64
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 201130%
35%
40%
45%
50%
55%
60%
65%
70%
36%
53%
48%
55%
0.52
0.59
0.310000000000002
0.53
US UK/FR/GER India China
Emerging markets’ trust in NGOs caught up to developed markets’ trust
25
What does all this tell us?
26
Ireland really is in the grip of a trust crisis
Businesses must begin to engage purposefully in order to gain trust
Government has an even bigger challenge – it must rebuild trust in an entire system
People are sceptical about media but organisations have the chance to become their own media company
The damage has been more internal than external and despite everything, internationally we still have a good reputation
The Transformation of Trust
Control Information
Focus Solely on Profit
Pro
tect
th
e B
ran
d
Sta
nd
Alo
ne
Profit With PurposeTr
ansp
aren
cy
Engagem
ent
Old Trust Framework New Trust Architecture
WHAT
HOW
WHERE
28
When an organisation is distrusted When an organisation is trusted
9%21%
55% will believenegative information
after hearing it 1-2 times
Trust protects reputation
will believe positive information after hearing it 1-2 times
will believe negative information after hearing it 1-2 times
40%will believe
positive information after hearing it 1-2 times
Ireland
29
Informed publics need information from multiple sources, multiple voices
Once (1); 4%
Twice (2); 12%
Three times (3); 24%
Four or Five times (4 - 5); 36%
Six to Nine times (6-9); 15%
Ten or more times (10+); 9%
3-5 times60%
And need to hear it 3-5 times to believe it
Ireland
30
Series112%
29%
79%
81%
14%
34%
69%
77%
93%
Through personal action, trust has tangible benefits
Bought shares
Paid more for products/services
Chose to buy products/servicesRefused to buy products/services
Shared negative opinions online
Sold shares
Shared positive opinions online
+_Distrusted Companies Trusted Companies
Actions Taken Over Past 12 Months – Ireland
Recommended them to a friend/colleagueCriticized them to a friend/colleague
31
Trust needs to be earned from multiple sources
The people in your trust portfolio will vary by sector and situation
Your ExpertsAcademics, Technical Experts, Analysts, Online experts
Your Media
Online Search, Broadcast, Print, Radio, Social Media, Company websites
Your Community
Person like myself, work colleagues, social networks, local community
Our Respected Leaders
CEOs, NGOs, Government leaders
32
Bridging the trust gap for organisations
What do I say?
Positioning, Master narrative, Creative ideas, Thought Leadership
Who do I say it to?
Stakeholder mapping, target media
How do I deliver it?
Spokespeople, Corporate PR, Social Media, Events, Tools & Content
How do I show the value?
Measure business results, media, message impact, reputation, Stakeholder advocacy
33
Conclusions
Business must align profit and purpose for social benefit
Trust is a protective agent and leads to tangible benefits; lack of trust is barrier to change
Current media landscape plus increased scepticism requires multiple voices and channels
Demand for authority and accountability set new expectations for corporate leadership
34
